PRINCETON, N.J.–(BUSINESS WIRE)–NRG Energy, Inc. (NYSE:NRG) has priced its offering of $600.0 million in
aggregate principal amount of 3.750% senior secured first lien notes due
2024 at a price to the public of 99.971% of their face value (the “2024
Notes”) and $500.0 million in aggregate principal amount of 4.450%
senior secured first lien notes due 2029 at a price to the public of
99.869% of their face value (the “2029 Notes” and, together with the
2024 Notes, the “Notes”). The Notes will be guaranteed on a
first-priority basis by each of NRG’s current and future subsidiaries
that guarantee indebtedness under its credit agreement. The Notes will
be secured by a first priority security interest in the same collateral
that is pledged for the benefit of the lenders under NRG’s credit
agreement, which consists of a substantial portion of the property and
assets owned by NRG and the guarantors. The collateral securing the
Notes will be released if NRG obtains an investment grade rating from
two out of the three rating agencies, subject to reversion if such
rating agencies withdraw our investment grade rating or downgrade our
rating below investment grade.
The 2024 Notes mature on June 15, 2024, and the 2029 Notes mature on
June 15, 2029. The offering is expected to close on May 28, 2019,
subject to customary closing conditions.
NRG intends to use the net proceeds from the offering, together with
cash on hand, to repay in full its senior first priority secured term
loan and to pay fees and expenses related to the offering of the Notes.
The Notes and related guarantees are being offered only to qualified
institutional buyers in reliance on Rule 144A under the Securities Act
of 1933, as amended (the “Securities Act”), or, outside the United
States, to persons other than “U.S. persons” in compliance with
Regulation S under the Securities Act. The Notes and related guarantees
have not been registered under the Securities Act or the securities laws
of any other jurisdiction and may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements. This press release does not constitute an
offer to sell any security, including the Notes, nor a solicitation for
an offer to purchase any security, including the Notes.
About NRG
At NRG, we’re redefining power by putting customers at the center of
everything we do. We create value by generating electricity and serving
nearly 3 million residential and commercial customers through our
portfolio of retail electricity brands. A Fortune 500 company, NRG
delivers customer-focused solutions for managing electricity, while
enhancing energy choice and working towards a sustainable energy future.
Forward-Looking Statements
This communication contains forward-looking statements that may state
NRG’s or its management’s intentions, beliefs, expectations or
predictions for the future. Such forward-looking statements are subject
to certain risks, uncertainties and assumptions, and typically can be
identified by the use of words such as “will,” “expect,” “estimate,”
“anticipate,” “forecast,” “plan,” “believe” and similar terms. Although
NRG believes that its expectations are reasonable, it can give no
assurance that these expectations will prove to have been correct, and
actual results may vary materially. Factors that could cause actual
results to differ materially from those contemplated above include,
among others, risks and uncertainties related to the capital markets
generally and whether NRG will offer the Notes or consummate the
offering, the anticipated terms of the Notes and the anticipated use of
proceeds.
The foregoing review of factors that could cause NRG’s actual results to
differ materially from those contemplated in the forward-looking
statements included herein should be considered in connection with
information regarding risks and uncertainties that may affect NRG’s
future results included in NRG’s filings with the SEC at www.sec.gov.
Contacts
Media:
Candice Adams
609.524.5428
Investors:
Kevin
L. Cole, CFA
609.524.4526
